It Takes Experience, Market Access to Design the Right D&O Policy
Over the last several years, claims against directors and officers have spiked, making the insurance market more difficult for clients. Add to this emerging risks amid the COVID-19 pandemic, and the need for insurance expertise has never been greater. At IPRO Agency Insurance Services, we have the experience and longstanding insurance market relationships to help negotiate your policy coverage, terms and pricing so that your firm and directors and officers are well-protected.
If you own a private company, we’ll help present your risk profile and tell your story as underwriters increasingly look at your firm’s liquidity, guidance and responsiveness to COVID-19, and your actions in averting revenue disruption, supply chain and logistical concerns.
For public companies, insurers are also concerned about potential COVID-related lawsuits along with derivative litigation in which lawsuits are filed on behalf of a company against individual directors and officers alleged to have violated their duty to the company. Board diversity is also a concern as several public companies already face securities lawsuits demanding their boards become more diverse. Shareholder activism has become an emerging risk with corporations being pressured through lawsuits to be more active in addressing climate change and diverse workforces. Our staff will help you address these concerns when going to market to get you the coverage you require.
Inside the D&O Policy
The D&O policy covers individuals for claims made against them while serving on a board of directors and/or as an officer. There are three “sides” available with a D&O policy:
- Side A: Protects a corporation’s directors and officers when the company cannot indemnify the individuals.
- Side B: Reimburses the organization when it indemnifies the individuals, protecting the company’s balance sheet.
- Side C: Also known as “entity coverage,” this eliminates disputes of coverage allocation when both the directors and officers and the insured organization are named as co-defendants in a securities lawsuit.